A survey shows that majority of respondents believe that the government’s tax reform is unjust.
The tax reform which will come into force on 1 January has been in the focus of political debates in recent weeks. MojPosao website conducted a poll with more than 2,260 respondents to see whether they supported the legislative changes, reports Lider on December 6, 2016.
The main controversy with the tax reform is the fact that the decreased income tax rates will mostly benefit those with above average and high salaries, while those with smaller incomes will see almost no benefit at all.
More than half of all respondents (59 percent) believe that the tax reform is not fair because it is more favourable to those with high salaries. “When we see for ourselves that ordinary salaries increase by at least 500 kuna, only then will the government restore a bit of its credibility with regards to Croatian citizens”, said one of the respondents. Another one asked: “According to your salary calculator, my salary is expected to increase by just 45 kuna. I wonder how will that be an incentive to me and my family to increase our spending and lead a more comfortable life, compared to those whose salaries will increase by several thousand kuna?”
A quarter of all respondents (25 percent) believe that the tax reform is partially just: it is fine to try to keep quality workers from leaving the country, but the minimum wage should be increased. The respondents think that the minimum wage should be between 3,000 and 5,000 kuna net.
“The minimum wage does not cover minimum costs for one worker and definitely has to be increased. If there is a decrease in tax burden, that might start the process of creating new jobs”, said one of the respondents, while another one proposed raising the non-taxable part of the salary to the amount of the average monthly basket of consumer goods. “People have already paid taxes on all services and goods. Until when will we have salaries like in Uganda, and prices like in Switzerland?”
The tax reform is considered to be just by 13 percent of respondents, who say that those with lowest salaries are already not paying any income taxes at all. “The poor live because the rich pay taxes, and not vice versa”, said one of the respondents.
